Preview

Target Corporation

Powerful Essays
Open Document
Open Document
4839 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Target Corporation
Target Corporation
Strategic Report

Linda Hahn Lisa Kwak John Palys April 20, 2005

Target Corporation

Table of Contents

Executive Summary .......................................................................... 2 Company History .............................................................................. 3 Financial Analysis ............................................................................. 5 Competitive Analysis: Porter’s Forces............................................... 8
Internal Rivalry........................................................................................8 Entry ........................................................................................................9 Substitutes and Complements................................................................ 10 Supplier Power ...................................................................................... 10 Buyer Power .......................................................................................... 11

Strategic Recommendation............................................................. 12 Conclusion ...................................................................................... 16 References ..................................................................................... 17

SageGroup, LLP

1

Target Corporation

Executive Summary
Target Corporation has no new imminent threats on its horizon. Its greatest challenge continues to be the problem of competing with Wal-Mart. In order to reduce the threat posed to profits by internal rivalry in the discount retailing industry, Target should focus on two key issues: growth and differentiation. Target has grown consistently in the past. The obvious areas in which Target should concentrate its expansion are markets in the South and Northeast, where there are plenty of attractive locations with no Target stores. New territory also exists in the form of urban areas. Due to size



References: Heller, Laura. “Wal-Mart remains the price leader, but competitors are closing the gap.” DSN Retailing Today 2 Aug. 2004: 8-10. Klinefelter, Jeffrey, Neely Tamminga, and Melissa Mullikin. “Target Corporation.” Piper Jaffray 22 Sep. 2004. Kozloff, Emme, Ian Gordon, and Robert Higginbotham. “A Look at the Stand-Alone Target.” Bernstein Research Call 23 Sep. 2004. Kozloff, Emme, Ian Gordon, and Robert Higginbotham. “Discount Retail.” Bernstein Research Call 16 Oct. 2004. Lightfoot, Paul. “Wal-Martification.” ALsysinc.com 1 Jun. 2003. Schlosser, Julie. “How Target Does It.” Fortune 18 Oct. 2004: 100. Stinson, Jeff. FTN Midwest Research. 29 Sep. 2004. “Target Corp. Fighting a War on Two Fronts.” CIBC World Markets Equity Research 24 Mar. 2003. “Target Corporation.” International Directory of Company Histories Vol. 61, St. James Press, 2004. Weinswig, Deborah. Target Corporation November Credit Review, Smith Barney. 27 Dec. 2004. SageGroup, LLP 17

You May Also Find These Documents Helpful

  • Good Essays

    Walmart vs. Target

    • 1096 Words
    • 5 Pages

    Walmart has about 9,600 retails around the world it’s the World’s 18th largest public corporation. It is also the biggest private employer in the world with over 2 million employees, and is the largest retailer in the world. Walmart is a much bigger brand than Target as target only has 1,767 stores and only operates out of U.S. as of right now. Even if target is not as big as its competitor Walmart it’s still a big competition with Walmart. Both companies have their own brand which they sell at a cheaper price than other name brand items. They have many brands that range from food to clothes to household items. Many shoppers prefer Walmart and target brands over the other leading name brands. That’s because of the prices and quality of the brands. For an example Walmart food brands are mostly between 10 cents to two dollars cheaper than the name brand, and target home furnishing has good looks and quality for long lasting furniture. There’s many items that are the same that you can get at both stores, and even both stores are right next to each other in some sort some not even a mile away from each other, so if it’s not the distance that make you go into one store then the other then what is it? Both stores are mainly superstores meaning a one stop shop get everything in one store from food, to clothes to even electronics, so there really no need to go to one store pick up a few items and go to another because they don’t sell such items you were looking for. Doing my research I find a big…

    • 1096 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Target Corporation is a retail store based out of America, its headquarters are in Minneapolis, Minnesota. Target’s goal began with creating an upscale alternative to Wal Mart, while remaining a discount store. They have since become the fourth largest retailer and second largest discount retailer in the United States, Wal Mart being the first. Target’s first retail store was opened in 1962, in Minnesota. The company has continually grown to its present day size, operating 1,916 stores in the US. In 2013 Target began operating in Canada, and has since opened 127 stores throughout. Target offers clean, spacious and guest-friendly stores. Their motto is “Expect More, Pay…

    • 1781 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Target Corporation

    • 837 Words
    • 3 Pages

    The purpose of this memo is to provide significant financial information of Target Corporation as well as to provide the necessary assistance to facilitate an investment decision.…

    • 837 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Target Corporation

    • 3133 Words
    • 13 Pages

    The Target Corporation, what used to be known as the Dayton Dry Goods Co., is an American retailing company that was founded in Minneapolis, Minnesota, in 1902. In 1962, the first Target store was opened in Roseville, Minnesota. It is the fifth largest retailer by sales revenue in the United States behind Wal-Mart, The Home Depot, Kroger and Costco. The company is ranked 33rd on the 2007 Fortune 500. Target operates its retailing business exclusively in the United States. It is a rival with Kmart and Wal-Mart. Target was listed in Internet Retailer's list of the top 500 retail web sites in 2007 also, this not only proves of brick and mortar sucsess but also online retail.…

    • 3133 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    Cited: Hagloch, Susan B. "WalMart: The High Cost Of Low Price." Library Journal 131.3 (2006): 152. Academic Search Complete. Web. 7 Aug. 2012.…

    • 1008 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Target Corporation

    • 2902 Words
    • 12 Pages

    Target Corporation is a growth company focused exclusively on general merchandise retailing. Their principal operating strategy is to provide exceptional value to American consumers through multiple retail formats ranging from upscale discount and moderate-priced to full-service department stores. (Target Corporation Company, n.d.).…

    • 2902 Words
    • 12 Pages
    Better Essays
  • Better Essays

    Target Corporation

    • 2418 Words
    • 10 Pages

    Reel, L. (2010). Target Corporation: Company Analysis and Evaluation. Yahoo Business and Finance , 1-4.…

    • 2418 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    Swot Target Corporation

    • 430 Words
    • 2 Pages

    • New locations give Target the opportunity to be diverse in the market. More and more Targets are attaching to trendy malls in different market segments.…

    • 430 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Target Strategic Audit

    • 15483 Words
    • 83 Pages

    This report examines Target Corporation’s performance in a detailed strategic audit. The audit includes an external, internal and strategic analysis as well as a recommended course of action. The findings of the audit recommend a robust on-line/mobile presence to complement in-store sales, and to increase future earnings to remain competitive by building upon physical assets, brand value and logistical capabilities.…

    • 15483 Words
    • 83 Pages
    Powerful Essays
  • Best Essays

    Hr491 Position Paper

    • 2459 Words
    • 10 Pages

    Target Corporation is a nationally recognized discount retailer that is focused on providing customers with trendy, high-quality products at affordable prices. Target is celebrating its 50th anniversary this year, after opening the first store in 1962 located in Rovesville, Minnesota (About Target, 2012). Today, Target has 1,763 stores in 49 states, Target.com, 37 distribution centers nationally, a headquarters in India, expanding to Canada in 2013, and a branded proprietary credit card and rewards programs. This organization is focused on giving the customer the ultimate shopping experience, and because of that, is recognized as an innovating leader in the retail industry.…

    • 2459 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Many industry observers believe that Target is facing a critical crossroad in its strategic direction (both from a financial as well as operating standpoint). They question how it will sustain its double digit historical growth trend given its benchmark competitors size. In addition, Wal-Mart's rapid expansion of its food business is expected to produce continued double-digit growth. While Wal-Mart has chosen the Supercenter to be its primary growth vehicle, Target views its own SuperTarget concept as an important contributor to growth, but not its primary contributor. Target's traditional discount store remains its significant growth channel and considerable capital expenditures are devoted to the continued expansion of this concept.…

    • 516 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Company Profile Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target Corporation operates general merchandise and food discount stores in the United States. It operates as two reportable segments: Retail and Credit Card. The company offers household essentials, including electronics, music, and toys; apparel and accessories; home furnishings as well as seasonal merchandise. It also sells its merchandise under private-label brands, such as Archer Farms, etc. Target Corporation operates in-store amenities, such as Target Caféand Target Clinic as well. Its marketing strategy includes selling its products on its online shopping site Target.com and its network of distribution centers. As of June 2, 2010, it operated 1,740 stores in 49 states and the District of Columbia covering 231,941,000 square feet, and has more than 351,000 employees across the United States. Target Corporation’s main competitors are Wal-Mart Stores Inc. (WMT), and Costco Wholesale Corporation (COST). According to its 10-K annual SEC filing, 88% of shares are held by institutional and mutual fund owners. The five largest shareholders of Target Corporation are Gregg W. Steinhafel, Kathryn A. Tesija, Douglas A. Scovanner, Richard M. Kovacevich and John D. Griffith. Segment Performance Target operates as two reportable segments: Retail and Credit Card segments. According to Target’s 10-K annual SEC filing, Target Corporation’s retail segment contains service of merchandising operations, and associate with online services. Its credit card segment gives qualified clients credit cards, such as Target…

    • 2214 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Toyota Aygo

    • 6779 Words
    • 28 Pages

    Toyota- Aygo Student:Vuk Mihajlovic Table of contents Introduction..........................................................................................................................................3 1. Toyota Aygo.....................................................................................................................................5 2. Five force analysis..........................................................................................................................…

    • 6779 Words
    • 28 Pages
    Powerful Essays
  • Satisfactory Essays

    Target

    • 259 Words
    • 2 Pages

    The macroenvironmental factors that affected Target's performance during the period were connected to the demographic, economic, natural, technological, political, and cultural. The change in demographic is related to the economy because when there is an unemployment it will create households income to drop while the households expenses increases. Since Wal-Mart is all about low price and Target is all about style and brand, Target thought customers will pay a little more for the brand but they got the opposite reaction from the customers. For an example in the case it says “As unemployment rose and consumers began pinching their pennies, Wal-Mart’s familiar price “rollbacks” resonated with consumers while Target’s image of slightly better stuff for slightly higher prices did not.” This tells you that people did not care about the brand during the unemployment time therefore customers start to buy things that are around there range which made Wal-Mart to have a better image than Target. Target should’ve followed their word “Pay Less” in their slogan and did some kind of survey to get feedback from customers in case they needed to fix something so the customers will not do business somewhere else. Another factor was culture because culture was also a shift that took over by economy. Not every household was affected economically because some people were prepared to face the rough situations ahead before the rising of unemployment and uncertain economic conditions. These are some macroenvironmental factors that affected Target's performance during the…

    • 259 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Roderick, Daffyd. "For Whom the Tell Tolls." Time Asia. Vol. 159 No. 11. March 25,…

    • 12017 Words
    • 49 Pages
    Powerful Essays